SolarEdge Technologies Inc (SEDG)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		18.36	36.39	53.71	437.07	2.84	3.04	—	3.53	3.68	3.27	3.72	4.25	4.60	5.28	5.30	8.30	8.76	6.73	3.73	4.35
DSO	days	19.88	10.03	6.80	0.84	128.72	119.92	—	103.43	99.23	111.61	98.02	85.83	79.30	69.18	68.87	44.00	41.66	54.27	97.88	83.91

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 18.36
= 19.88

Days Sales Outstanding (DSO) is a key metric that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates more efficient collections and better cash flow management.

Analyzing SolarEdge Technologies Inc's DSO over the past few quarters, we observe a fluctuating trend. In the most recent quarter, as of June 30, 2024, the DSO stands at 19.88 days, which is a significant increase from the previous quarter's 10.03 days. This suggests that the company is taking longer to collect revenue from sales, which might indicate challenges in their accounts receivable management.

Looking back, we notice considerable variability in DSO figures. For instance, in December 2023, the DSO was as low as 6.80 days, indicating efficient collections management. However, in the same quarter of the previous year (December 2022), the DSO was not available, suggesting potential data reporting issues.

The trend in DSO seems to have improved since Jun 30, 2023, when the DSO was exceptionally high at 128.72 days, signaling delays in collecting revenue. Since then, the company has made progress in speeding up collections, as evidenced by the decreasing DSO figures in subsequent quarters.

Overall, it is crucial for SolarEdge Technologies Inc to closely monitor and manage their DSO to ensure timely collections, optimize cash flow, and maintain healthy working capital levels. This analysis highlights the importance of efficient accounts receivable management in supporting the company's financial health and stability.